Iconic handbag brand Mulberry plans to slash 25% of its global workforce on fears of slow growth after reopening stores
- UK luxury brand Mulberry said it plans to reduce its global workforce by 25% to narrow the consequential effects of the COVID-19 pandemic on its business.
- Although the iconic handbag retailer continued to sell its products digitally during the pandemic, demand was severely impacted by its store closings across the world.
- "The shutting of all our physical stores has had, and will continue to have, a marked effect on our business," Mulberry's CEO Thierry Andretta said in a statement.
British fashion brand Mulberry is mulling plans to cut 25% of its global workforce owing to the uncertainty and impact of the COVID-19 pandemic.
On Monday, the retailer said it would be "launching a consultation process on proposals to reduce employee numbers by approximately 25% across the global business."
Mulberry is known for its stylish leather handbags which can cost up to $5,000 and have been a royal household favorite, especially for both Kate Middleton and Meghan Markle.
While most of its stores were closed since March 24, the fashion brand continued to sell through digital channels. But online sales have not completely offset the fall in demand felt by store closures.
The almost five-decade-old iconic handbag brand has about 1,400 employees across its 120 owned and partner stores in 25 countries, with five international offices in Paris, New York, Hong Kong, Tokyo, and Seoul.
Plans to cut 25% of its workforce would mean a loss of about 350 jobs globally.
Since the UK government has relaxed lockdown restrictions, Mulberry plans on a phased reopening of some of its local stores with new safety guidelines from June 15 onward.
Some of its stores have already reopened in China, South Korea, Europe, and Canada.
In the near term, the brand warned investors its overall recovery is expected to be slow and gradual as social distancing measures and reduced foreign tourist visits would continue to dampen sales.
"The shutting of all our physical stores has had, and will continue to have, a marked effect on our business," Thierry Andretta, Mulberry's chief executive, said in the statement.